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Vale S.A. (VALE)

- NYSE
  • Oct. 27, 2014, 10:31 AM
    • It's an ugly open for Petrobras (PBR -14.2%) following Pres. Rousseff's re-election as Brazil's president, as hopes are dashed for a regime change that might have helped investor confidence in the country and the company.
    • Rousseff's victory "was not totally priced in yet," Loomis Sayles analyst Bianca Taylor says, adding that she expects a slump in Brazil assets as a whole in the next few days.
    • PBR and state-controlled utility Centrais Eletricas Brasileiras (EBR -12.3%) were the two worst performing stocks in the 834-member MSCI Emerging Markets Index this morning.
    • Also: VALE -5.9%, ITUB -6.5%, BBD -8.1%, GOL -7.6%.
    • Brazil ETFs: EWZ -6.7%, BRF, BRXX, EWZS, BRZU, BRAQ, BZQ, BRAZ, BRAF, UBR, BRZS, DBBR, FBZ
    | 6 Comments
  • Oct. 27, 2014, 9:13 AM
    | 1 Comment
  • Oct. 27, 2014, 7:12 AM
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  • Oct. 26, 2014, 8:41 PM
    • Incumbent Dilma Rousseff is re-elected to a second term as Brazil's president, winning about 51% of the votes, according to the official count. It could be bad news for Brazilian stocks, or just maybe her victory was already priced in.
    • The Bovespa had been about 2014's strongest major global market through roughly August as polls showed support evaporating for Rousseff, but the index has slumped more than 15% over the past two months as a victory by her more conservative challenger Aecio Neves looked less and less likely.
    • Brazil ETFs: EWZ, BRF, BRXX, EWZS, BRZU, BRAQ, BZQ, BRAZ, BRAF, UBR, BRZS, DBBR, FBZ
    • Among individual stocks: Petrobas (NYSE:PBR), Vale (NYSE:VALE), Itau Unibanco (NYSE:ITUB), Banco Bradesco (NYSE:BBD), Gol Linhas (NYSE:GOL).
    • Broad Latin American ETFs: ILF, LBJ, GML, EEML, FLN
    | 8 Comments
  • Oct. 24, 2014, 11:11 AM
    • An outlier of a poll shows opposition candidate Aecio Neves with a sizable (though shrinking) lead over President Dilma Rousseff. Other polls have consistently shown Rousseff with a lead of six to eight percentage points. Still to come is big debate between the two contenders tonight. The election is on Sunday.
    • The credibility of opinion polling is somewhat suspect in Brazil, with different surveys showing wildly different results, not to mention all the major pollsters failing to capture the extent of Neves' support ahead of the first round of elections earlier this month.
    • The Bovespa is up 3.6%. EWZ +5.3%
    • Petrobas (PBR +6.3%), Vale (VALE +4.4%), Itau Unibanco (ITUB +6.1%), Banco Bradesco (BBD +5.5%), Gol Linhas (GOL +6.6%)
    • ETFs: EWZ, BRF, BRXX, EWZS, BRZU, BRAQ, BZQ, BRAZ, BRAF, UBR, BRZS, DBBR, FBZ
    • The iShares S&P Latin America 40 (ILF +3%)
    • Broad South American ETFs: ILF, LBJ, GML, EEML, FLN
    | 3 Comments
  • Oct. 23, 2014, 8:34 AM
    • Vale (NYSE:VALE) -2.3% premarket after saying its Q3 iron ore output rose 3.1% to 85.7M metric tons from 83.1M tons a year ago and is on track to set a record for the year despite plunging prices.
    • Output beat the previous quarterly record of 85M tons set in Q3 2011; YTD, iron ore output has climbed 8.1% at 236.2M tons, the highest ever.
    • Q3 iron ore shipments fell by 3.6M tons due to protests at its cargo railroad out of Carajas in September, resulting in a 9.3M ton increase in iron ore global stocks.
    • Q3 nickel production rose 16% Y/Y to 72.1K tons after the company brought the Onça Puma mine in Brazil online this year.
    • Copper output rose 11% to 104.8K tons, and coal production fell 1.5% to 2.34M tons.
    | 2 Comments
  • Oct. 21, 2014, 3:13 PM
    • Jefferies lowers its commodity price forecasts, cuts 2015 earnings estimates for mining companies it covers by an average of 21%, and downgrades BHP Billiton (BHP +0.6%) to Hold from Buy but maintains a Buy rating on Rio Tinto (RIO +1.5%) and a Hold on Vale (VALE +1.1%).
    • The firm expects BHP to outperform over the very long-term but sees limited upside potential over the next 6-12 months, with shares now trading at a premium on price/NPV; BHP also has limited scope to materially grow its dividend over the next year.
    • Jefferies maintain its Buy rating on RIO based on relative valuation as well as capital return potential, high return on capital invested and strong free cash flow even in a weaker iron ore price environment.
    | 1 Comment
  • Oct. 20, 2014, 7:54 AM
    • Vale (NYSE:VALE) says a revised nickel mining contract with Indonesia to extend its contract in the country will require it to raise maximum royalties, cut land holdings and sell another 20% of its shares to local investors.
    • Vale will have to pay the Indonesian government a significantly higher royalty rate of 2%-3%, depending on the price of nickel, effective immediately, after paying an average 0.63% royalty on nickel revenues between 2010-13.
    • The agreement entitles Vale to continue operations in Indonesia for up to 20 years after its existing contract of work expires in late 2025.
    | 1 Comment
  • Oct. 13, 2014, 2:18 PM
    • Cliffs Natural Resources (CLF +14.1%) shares are surging as iron ore prices posted their biggest intraday gain since May after falling steadily in recent weeks.
    • Investors covered short positions on expectations prices may have hit bottom; sentiment also was boosted by data showing China's overall exports rose more than forecast and imports unexpectedly gained in September.
    • The big gain occurs despite a J.P. Morgan downgrade to Neutral from Overweight with a reduced price target of $5 from $13, as the firm cites CLF's lower iron ore price deck and sum-of-the-parts valuation.
    • Other iron ore producers also are up: VALE +8%, RIO +5.3%, BHP +4.2%.
    | 3 Comments
  • Oct. 13, 2014, 11:30 AM
    • Presidential challenger Aecio Neves over the weekend received the endorsement of Marina Silva - the 3rd-place finisher in the first election round - and the latest poll shows Neves outgunning incumbent Dilma Rousseff by 52.4% to 36.7%.
    • The runoff election is set for October 26.
    • The Bovespa is soaring, up 4.4%, led by Petrobas (PBR +9%), Vale (VALE +5.2%), GOL Linhas Aereas (GOL +6.4%), Banco Bradesco (BBD +8.8%), and Itau Unibanco (ITUB +8.7%).
    • The iShares MSCI Brazil Index (EWZ +5.1%).
    • Brazil ETFs: EWZ, BRF, BRXX, EWZS, BRZU, BRAQ, BZQ, BRAZ, BRAF, UBR, BRZS, DBBR, FBZ
    • The iShares S&P Latin America 40 Index (ILF +3.7%).
    • Broad South American ETFs: ILF, LBJ, GML, EEML, FLN
    | 7 Comments
  • Oct. 13, 2014, 9:22 AM
    • Iron ore prices rose 4.9% to $84.17/ton.
    • The gain is the biggest intraday gain since May.
    • Vale (NYSE:VALE) is the world's No.1 iron ore producer.
    | 2 Comments
  • Oct. 9, 2014, 10:49 AM
    • Rio Tinto (RIO -1%) is defending its plans to expand iron ore production in Australia at a time of sharply falling prices, as the head of its iron ore division says "if we don't fill that void, somebody else will."
    • Rio Tinto is pouring billions of dollars into expanding iron ore mines and infrastructure in Australia's Pilbara region, betting that its huge efficiencies of scale will allow it to increase profits even though iron ore prices have fallen more than 40% this year.
    • Earlier this week, BHP Billiton (BHP -0.5%) also said it planned to increase its output by nearly 30% by making its operations more efficient; Vale (VALE -0.8%) also is planning increases in output.
    | 6 Comments
  • Oct. 7, 2014, 2:22 PM
    • Petrobras (PBR +7.1%) and other Brazilian stocks continue to climb higher after Sunday's presidential election resulted in pro-business candidate Aeceo Neves showing surprising strength in making the runoff against incumbent Pres. Rousseff.
    • Also: CIG +9.3%, EBR.B +3.9%, ELP +3.2%, EWZ +2.4%, BBD +2%, VALE +1.8%, ITUB +1.8%.
    • Separately, PBR says its latest well in the Brigadeiro discovery evaluation plan area has confirmed the presence of good quality oil in the ultradeep waters of the Espirito Santo Basin post-salt deposits.
    • PBR, with an 89.9% stake, is the operator of the consortium developing the project.
    | Comment!
  • Oct. 6, 2014, 11:18 AM
    • Petrobras (PBR +13.2%) leads Brazilian stocks higher after yesterday's presidential election resulted in a runoff to be held Oct. 26 between incumbent Pres. Rousseff and - in an upset - pro-business challenger Aécio Neves.
    • Raymond James analyst Pavel Molchanov says a Neves victory would be the best outcome by far for PBR concerning the potential for loosening domestic content rules and restrictions on foreign investment; but the analyst warns that even under a Neves administration, it would be unrealistic to expect an immediate dramatic fuel price hike since such a move would be very unpopular move and cause economic dislocation.
    • Among other Brazilian stocks: VALE +2.5%, ITUB +9.8%, BBD +12.7%.
    | Comment!
  • Oct. 6, 2014, 9:16 AM
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  • Oct. 6, 2014, 7:03 AM
    • The iShares MSCI Brazil Index ETF (NYSEARCA:EWZ) is ahead by 6.7% premarket after President Dilma Rousseff pulls in just 42% of the vote in Brazil's 3-way election, and her more-conservative challenger Aecio Neves gets 34%, well ahead of the 26% support he saw in the most recent pre-election poll.
    • Finishing in 3rd place is Marina Silva with 21% of the votes.
    • Brazilian stocks have been rallying all year on hope Rousseff was set to be tossed, but lately have given back some gains on worry she might in fact win another term.
    • The runoff election will be on October 26.
    • Petrobas (NYSE:PBR+14.5%, Vale (NYSE:VALE+3.5%, Itau Unibanco (NYSE:ITUB+1.6%, Banco Bradesco (NYSE:BBD+3.9% premarket
    • ETFs: EWZ, BRF, BRXX, EWZS, BRZU, BRAQ, BZQ, BRAZ, BRAF, UBR, BRZS, DBBR, FBZ
    | 17 Comments
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Company Description
Vale SA is a metals & mining company. It produces & supplies iron ore, iron ore pellets, nickel, manganese ore, ferroalloys, copper, coal, phosphates, potash, cobalt & others.
Industry: Steel & Iron
Country: Brazil